Back on June 10th, I took Madeline Schnapp of TrimTabs to task for claiming that federal withholding-tax revenue had “suddenly started falling”.
The data is now in, and any way you slice it, there was no decline whatsoever. As a matter of fact, withholding-tax revenue was robust:
Calendar May : $126.8 billion
Calendar June: $144.4 billion
That’s a 13.94% jump! And the year-over-year comparison for June was robust also.
What makes this even more impressive is that during this time the Census Bureau was winding down its massive workforce. On May 8th, the CB’s workforce was 585,729. Buy June 19th, it was more than chopped in half to 249,902.
So, while over a quarter of a million government jobs were being cut, withholding-tax revenue increased by 13.94%.
That is amazing.
And Schnapp couldn’t have made a dumber forecast.
TrimTabs predicted a loss of 200,000 jobs in June, and the private economy actually added 83,000. And that was more than double the 41,000 that it created in May. June was a very good month for the private-economy jobs market.
In summary, TrimTabs, which is partially owned by Goldman Sachs, got the withholding data completely wrong once again. And your only accurate, and honest, source for reporting on this vital data is still DailyJobsUpdate.com.
Note: There were two extra business days in June. However, even if you chop off the last two days of June, the total for the month comes to $134.9 billion – still a nice jump.